Deal Watch: HemCon acquires a global reach

| Print |  Email
Tuesday, April 01, 2008

By Robin Doussard

From tiny shrimp shells mighty companies grow. HemCon Medical Technologies, maker of the blood-stopping bandage used on battlefields that was developed with the Oregon Medical Laser Center and Providence St. Vincent’s Hospital, has made its first acquisition.

Portland-based HemCon announced in late February that it would pay almost $41 million in a cash-for-stock agreement for Alltracel Pharmaceuticals, a publicly traded Irish company that focuses on research and commercialization of health-care products. This move will


boost HemCon’s annual revenues in 2008 to about $100 million, and push the number of local jobs from 115 to 130 or 140, according to HemCon president and CEO John W. Morgan. (Alltracel’s headcount is 55.)

Morgan says Alltracel was a good fit because it will give HemCon access to retail channels in Europe for the recently released over-the-counter KytoStat bandage that is made from the same shrimp-based technology as the battlefield bandage, along with manufacturing capabilities in India and China, and access to nanotechnology manufacturing. Alltracel’s oral care products in turn get access to the U.S.

HemCon was founded in 2001 and has experienced tremendous growth. “But for us to really break out as a company and get to a size we wanted to be at, acquisitions needed to be part of a multi-pronged strategy,” Morgan says. “This gives us a much bigger revenue and earnings base on which we can now invest in current products and develop new products.”

The company’s international business also has boomed and now has 23 distribution partners in 45 countries.

Morgan says the next strategic push will be the KytoStat bandage’s expansion into the consumer market. Morgan says they are working on getting the bandage, available now on and at some Albertson’s supermarkets, into other retail outlets. The other project is a product that will address infected wounds.

As for more acquisitions? “Potentially,” says Morgan. “We are looking at a number of companies whose technology might fit nicely into our portfolio.” 

List researched by Mark Druskoff

Feb. 12 Q2 ‘08 Sinar Mas Group (Indonesia) Fort St. James Sawmill / Pope & Talbot (Portland) $6m
Feb. 12 Q2 ‘08 Fox Lumber Sales (MT) Midway Sawmill / Pope & Talbot (Portland) $750k
Feb. 19 Q1 ‘08 Shimano American (CA) Pearl iZumi division / Nautilus (WA) $69.5m (cash+debt)
Feb. 22 Q2 ‘08 W. Graeme Roustan (Canada); Kohlberg & Co. Bauer Hockey subsidiary / Nike (Beaverton) $200m (cash)
Feb. 22 Q2 ‘08 Castlerise Investments / HemCon Medical Tech. (Portland) Alltracel Pharmaceuticals (Ireland) $40.8m
Feb. 22 Q1 ‘08 Access Systems Division (TX) / Overhead Door CladPanel division (Sweet Home) / Ankmar Door ND
Jan. 31 Daniel and Hooja Kim (Portland) Pennington Building (Portland) / 1314 NW Glisan Street LLC $3.2m
Feb. 6 undisclosed REIT (CA) Pointe West Apts. (Milwaukie) / Pointe West Apts. LLC $7.6m
Feb. 12 Real Estate Recovery Associates Forest and Garden Apartments (Portland) / family trust (Portland) $4.75m
Feb. 12 Harsch Investment Properties (Portland) Oceanside Business Center (CA) $9.7m
Feb. 20 Business Center Cedars West Apts. (Beaverton) / Los Arcos Associates; Dale H. Denson; Ross E. Crosby $4.3m
Feb. 20 Kendall Floral Supply 7.56-acre parcel (Canby) / Estate of Ray L Burden $1.65m
Feb. 20 Johanson Transportation Service (CA) office bldg. (Tigard) / Westec America $1.4m
Feb. 20 Urban Renaissance Group (WA); Great Point Investors (MA) Morgan Building (Portland) / LA County Employees Retirement System (CA) $27.5m
Feb. 29 Donahue Schriber (CA) Keizer Station (Keizer) / Chuck Sides (Salem) ND
Feb. 29 Imagine Hotel Group; Longview Partners Shilo Inn Hotel (WA) / Shilo Inn Vancouver (WA) $4.8m
Feb. 3 Tyfone (Portland) / Tom Spitzer, CEO Ojas Venture Partners (India) ND
Feb. 5 Pacific Crest Securities (Portland) / Scott E. Sandbo, chairman & CEO CIVC Partners (IL); Caltius Partners (CA) $30m (equity)
Feb. 5 GreenWood Resouces (Portland) /Jeff Nuss, president & CEO Phaunos Timber Fund Limited (UK) $200m (equity)
Feb. 21 Portland Habilitation Center Northwest (Portland) / John Murphy, president U.S. Bancorp’s Community Development (MN) $6.5m (debt)
Feb. 21 OHSU Cancer Institute (Portland) / Dr. Brian Druker, director Lori and Jen-Hsun Huang family (CA) $5m (donation)
Feb. 22 Oregon State University (Corvallis) / Edward Ray, president Giustina family (Eugene) $4m (donation)
Feb. 27 Pearl Buck Center (Eugene) / Ron Crasilneck, president state bond buyers $3m (conduit rev. bonds)
Feb. 28 Swanson Group Manufacturing (Glendale) / Steve Swanson, president state bond buyers $10m (conduit rev. bonds)
Feb. 28 Axial Vector Engine Corporation (Portland) / Ahmed Khalifa, chairman Dubai Consortium (United Arab Emirates) $45m (debt)

Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it



0 #1 GarageGuest 2013-10-04 19:28:58
Is there a difference between a garage and an overhead door? Or are they the same thing?
Quote | Report to administrator

More Articles

Dan and Louis Oyster Bar opens up to a changing neighborhood

The Latest
Thursday, December 11, 2014
121114-oystervidBy MEGHAN NOLT

VIDEO: Revamping a Classic — an iconic eatery stays relevant in a changing marketplace.


Growing a mobility cluster

Friday, October 31, 2014
0414 bikes bd2f6052BY LINDA BAKER | OB EDITOR

Why are there so few transportation startups in Portland?  The city’s leadership in bike, transit and pedestrian transportation has been well-documented.  But that was then — when government and nonprofits paved the way for a new, less auto centric way of life.


Editor's Letter: Power Play

January-Powerbook 2015
Thursday, December 11, 2014

There’s a fascinating article in the December issue of the Harvard Business Review about a profound power shift taking place in business and society. It’s a long read, but the gist revolves around the tension between “old power” and “new power” as a driver of transformation. Here’s an excerpt:

Old power works like a currency. It is held by few. Once gained, it is jealously guarded, and the powerful have a substantial store of it to spend. It is closed, inaccessible, and leader-driven. It downloads, and it captures.

New power operates differently, like a current. It is made by many. It is open, participatory, and peer-driven. It uploads, and it distributes. Like water or electricity, it’s most forceful when it surges. The goal with new power is not to hoard it but to channel it.

The authors, Henry Timms and Jeremy Heimans, don’t necessarily favor one form of power over another but merely outline how power is transitioning, and how companies can take advantage of these changes to strengthen their positions in the marketplace. 

Our Powerbook issue might be viewed as a case study in the new-power transition. This annual book of lists provides information on leading businesses, nonprofits and universities in the state. Most of the featured companies are entrenched power players now pursuing more flexible and less hierarchical approaches to doing business. Law firms, for example, are adopting new technologies and fee structures to make legal services more accessible and affordable.

This month we also take a look at a controversial new U.S. Securities and Exchange Commission rule requiring public companies to disclose the median pay of workers, as well as the ratio between CEO and median-worker pay. 

Part of the 2010 Dodd-Frank financial reform law, the rule will compel public companies to be more open about employee compensation, with the assumption that greater transparency will improve corporate performance and, perhaps, help address one of the major challenges of our time: income inequality.

New power is not only about strategy and tactics, the Harvard Business Review authors say. “The ultimate questions are ethical. The big question is whether new power can genuinely serve the common good and confront society’s most intractable problems.”

That sounds like a call to arms. Or a New Year’s resolution. Old power or new, the goals are the same: to be a force for positive change in the world. Happy 2015!

— Linda



Sunday, December 07, 2014

On Friday, Uber switched on an app — and with one push of the button torpedoed Portland’s famed public process.


Justice for All

January-Powerbook 2015
Thursday, December 11, 2014

Lawger upends the typical hourly based fee model by letting clients determine the cost.


Reimagining education to solve Oregon's student debt and underemployment problems

Thursday, November 13, 2014
carsonstudentdept-thumbBY RYAN CARSON | OP-ED CONTRIBUTOR

How do we skill up our future technology workforce in a smart way to take advantage of these high-paying jobs? The answer shouldn’t focus only on helping people get a bachelor’s degree.


Healthcare pullback

Thursday, November 20, 2014
112014-boehnercare-thumbBY JASON NORRIS | OB CONTRIBUTOR

Each month for Oregon Business, we assess factors that are shaping current capital market activity—and what they mean to investors. Here we take a look at two major developments regarding possible rollbacks of the Affordable Care Act (ACA).

Oregon Business magazinetitle-sponsored-links-02